Growth stocks are typically described as having which one of the following characteristics?
A)high dividends
B)a value orientation
C)high P/E ratios
D)low cash flows per share
E)low retention ratios

Question

Quizplus · Accepted Answer

Growth stocks are typically characterized by high P/E ratios, indicating that investors are willing to pay more for each dollar of earnings because they expect the company to continue growing and generating higher profits. High dividends (A) and a value orientation (B) are more commonly associated with income and value stocks, respectively. Low cash flows per share (D) and low retention ratios (E) are not necessarily indicative of growth stocks.

Growth Stocks Are Typically Described as Having Which One of the Following